Stock market quotes, forex, financial news, forex tools –

Metal market news – zinc rises to ten-year highs

 Breaking News
Metal market news – zinc rises to ten-year highs
January 09
09:00 2018

Analysts fear a lack of zinc. The fact is that the stocks of this metal in the capital of the United Kingdom fell to a ten-year low. The similar situation is in Shanghai; the largest city in the world currently has extremely modest reserves of zinc (a similar situation was observed for the last time in 2009).

The current situation has been caused by a stable increase in demand as well as an equally stable decline in the production level of this metal popular in the industry.

Market concerns raised the price growth for zinc. The value of this asset has been growing without correction since mid-December last year. As a result, a maximum over the past decade has been reached.

Yesterday, on the London stock exchange, zinc showed an increase to the level of 3,400 US dollars per ton (the growth was 0.4%). In China, zinc futures were being traded at $ 3,579 (the growth was 1.1%).

Analysts agree that the rise in prices for zinc will continue. The forecast was made not for a month, but for the nearest half-year. The way it works is: the price for zinc grows, producers begin to increase the production, the market tends to fill up with commodity stocks, the price for the resource falls. So, the saturation of the market with this resource is unlikely to happen earlier than in August this year.

It is currently known that the company Glencore Plc will resume zinc mining at the Lady Loretta mine in Australia. The market has not been yet aware of the plans of other manufacturers in terms of increasing zinc extraction.

As for other metals, the situation is as follows:
– for yesterday’s session on the London Metal Exchange (LME) copper went up by 0.6%;

– nickel showed an increase by 0.6%;

– aluminum grew by 0.1%;

– the price of gold fell by 0.4%;

– silver fell in price by 0.5%;

– palladium rose by 0.1%.

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

Related Articles


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment